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IJPPM
59,7 Total quality management
practices and results in food
companies
668
Evangelos L. Psomas and Christos V. Fotopoulos
Department of Business Administration of Food and Agricultural Enterprises,
Received May 2009
Revised November 2009 University of Ioannina, Agrinio, Greece
Accepted November 2009

Abstract
Purpose – The paper seeks to focus on the concept of total quality management (TQM) in a specific
sector: the food sector. The purpose of this paper is to factorize the TQM concept by analyzing the
TQM practices implemented and the results achieved from implementing such practices. It also aims
to determine the means by which the quality management results are optimized.
Design/methodology/approach – A research project was carried out in 92 Greek food companies
that were certified to ISO 9001:2000 and ELOT 1416 standard (hazard analysis critical control points,
HACCP system certification). The data collection method used in this study was that of the
questionnaire. Exploratory and confirmatory factor analyses were applied to assess the reliability and
validity of the latent constructs/factors (unobserved variables) of the TQM practices implemented and
the respective results. The latent constructs/factors that had significant impact on the results achieved
were determined through multiple linear regression analyses.
Findings – The analysis revealed four latent constructs/factors regarding the TQM practices and
three latent constructs/factors regarding the results achieved through implementing such practices.
According to the findings, a company’s quality improvement is equally influenced by the adoption
of quality practices by the top management as well as process and data quality management.
A company’s quality improvement was found to be the factor that primarily contributes to customer
satisfaction, while the customer focus is proved to be of secondary significance. Finally, the findings
showed that market benefits are derived from customer satisfaction and a company’s internal quality
improvement.
Research limitations/implications – The small sample size of the food companies participating in
this study, the observed variables that were removed from the analysis for the benefit of the
measurement model validity (convergent and discriminant) and finally the subjective character of the
data collected are the limitations of the present study. However, these limitations suggest future
research orientations.
Practical implications – The determination of reliable and valid latent constructs/factors of the
TQM practices implemented may help food companies to focus their efforts in specific directions, in
order to build and implement a robust TQM model. Furthermore, detecting reliable and valid latent
constructs/factors of the results achieved through TQM practices implementation may motivate the
food companies to strengthen their efforts in broadening their management system towards the TQM
philosophy and business excellence. This may help food companies withstand the current business
downturn.
Originality/value – The paper describes in a reliable and valid manner a framework that consists of
the main pillars of the TQM practices implemented and the results achieved in a specific sector:
International Journal of Productivity the food sector.
and Performance Management
Vol. 59 No. 7, 2010
Keywords Total quality management, Food industry, Greece
pp. 668-687 Paper type Research paper
q Emerald Group Publishing Limited
1741-0401
DOI 10.1108/17410401011075657
Introduction TQM practices
The rapid rate of change in global and niche markets has increased pressure on in food
organizations to become more competitive (McAdam and Henderson, 2004). Moreover,
the global environment compels companies towards being more responsive to companies
customers and escalating requirements for higher quality (Iseri-Say et al., 2008). The
need for improving quality and thereby strengthening competitiveness was perceived as
an emergent task for many European and North American companies, which were 669
confronted with serious challenges from Japanese companies. The Japanese companies
had become “masters” in practising company-wide quality control and in this way
they gained a competitive advantage compared to most Western companies. This
company-wide approach to quality was unknown for most western companies until the
1980s, when what had happened in Japan was understood, and why a new management
philosophy was needed (Dahlgaard-Park, 2008). Moreover, changing from detection to
prevention requires not only the use of a set of quality management tools and techniques,
but also the development of a new operating philosophy that requires a change in the
way companies are managed (Hafeez et al., 2006).
Nowadays, competition among companies extends beyond national boundaries and
to be the best or a world-class company, something unique is required. For instance,
globalization requires the manufacturing companies to follow global environmental
norms. Similarly these days, companies are expected to give something back to society.
Considering these recent developments, it is necessary to have a new framework of
quality management incorporating the best practices (Sharma and Kodali, 2008).
Today almost every organization engages in quality initiatives, which aim at
increasing the quality of processes and products (Uyar, 2009).
In order to assure quality, the food manufacturing industry uses in particular
three internationally acknowledged quality assurance (QA) systems, i.e. hazard
analysis critical control points (HACCP), International Organization for Standardization
(ISO) and British Retail Consortium (van der Spiegel et al., 2005, 2007). However,
Beardsell and Dale (1999) confirmed the applicability of total quality management
(TQM) in the food supply and distribution industry, which according to van der
Spiegel et al. (2005) is the least frequently used quality system in the food manufacturing
industry. Alsaleh (2007) also found that despite the fact that the advanced tools of
quality, such as TQM and Six Sigma, play a critical role in improving the
competitiveness of companies, whereas the food-processing companies did not consider
them to the extent that was needed.
One of the problems encountered when trying to answer the question whether TQM
is efficient and effective for different types of organizations, is that there is a bewildering
array of definitions of what TQM is. It is also common to confuse quality control and
systems such as ISO 9000 with the more proactive emphasis in TQM (Bergquist et al.,
2005). Many organizations are not in a position to understand clearly the concept
of TQM, in terms of knowing what has to be implemented and what area to focus on.
The question is also whether the existing frameworks are equipped to cope with the
changes happening in the global manufacturing scenario (Sharma and Kodali, 2008).
Consequently, the different views of the evolution and definitions of TQM generate
problems both for those practitioners who are applying TQM and for those theorists
who are studying TQM (Bergquist et al., 2005).
IJPPM The search for the genuine keys to success in TQM implementation has become a
59,7 matter of deep concern to management of companies in the world. Organizational lack of
information and data on the critical factors is an obstacle to implementing TQM
effectively. So, research studies on the critical factors of TQM implementation are needed.
In other words, more data are required so that industries can avoid and prevent the same
problems from occurring (companies which adopted TQM ended up failing or dropping
670 the system initiative before it could really take hold), (Lau and Idris, 2001). Idris and Zairi
(2006) also stated that there is a need for more empirical research to clarify how the TQM
evolutionary path is related to critical success conditions within an economic sector,
industry, and era. With more empirical proof, an approach to a sustainable quality
strategy could be established. More research in the form of a longitudinal approach is also
needed since a “snapshot design” alone would not be sufficient to capture success
conditions holistically (Idris and Zairi, 2006). However, the success of the TQM research
depends on the development of valid and reliable measures which replicate actual TQM
practices companies adopt in the real world. Not only should the measurement be
consistent within a certain study, but also across many studies (Jitpaiboon and Rao, 2007).
The purpose of this paper is to detect the main TQM practices that the food
companies should focus on in order to optimize the quality management results.
The companies that are addressed through this study are the ISO 9001:2000 and ELOT
1416 (HACCP system) certified food companies including manufacturers, service
providers, and wholesale traders. Using the TQM practices and the respective results
defined in the literature, as the observed/measured variables of exploratory factor
analyses, latent constructs/factors (unobserved variables) emerge and are defined.
These latent constructs/factors constitute the underlying structure of the TQM practices
and the results, respectively. Thus, not only are the main areas of TQM and the main
quality management results determined, but also the means by which the food
companies can optimize their business results. The latent constructs/factors of the TQM
practises and the respective results are validated through confirmatory factor analyses,
while their relationships are examined through multiple linear regression analyses.
Having in mind the above-mentioned research proposals suggested by several authors,
the following research questions were formulated and examined through this study:
RQ1. What is the underlying structure (latent constructs/factors) of the TQM
practices implemented in food companies?
RQ2. What is the underlying structure (latent constructs/factors) of the results
achieved from implementing the TQM practices in food companies?
RQ3. Which latent constructs/factors have an impact on achieving quality
management results in food companies?
The rest of the paper is organized as follows: the first part reviews the existing literature.
The second part describes the methodology of a research project carried out in Greek
food companies. The third part presents the analysis and the respective results. Finally,
the results are discussed and final conclusions are presented.

Literature review
Various studies have been carried out to identify elements for the successful
manifestation of TQM in an organization (Sharma and Kodali, 2008). In this part of the
paper, an extensive review of the literature is presented. Research studies examined the TQM practices
TQM practices implementation, the results achieved through incorporating the total in food
quality philosophy in the management system as well as their relationships are
reviewed. However, an attempt has been made to focus on research studies that used companies
sample companies from the food sector. As a result we focus on research studies that
use either exclusive or non-exclusive food companies in their sample. In the majority of
these studies, the food companies constitute not the whole percentage of the sample but 671
just a part of it. Based on this categorization, the research studies are presented below.
TQM practices and results
Despite the divergence of views on what constitutes TQM, there are a number of
common elements running through the various definitions (Martinez-Lorente et al.,
1998). From a cursory review of the award-based and academic-based frameworks,
Sharma and Kodali (2008) found that there are some elements/factors/constructs which
are common across various frameworks, while many elements/factors/constructs differ
considerably. However, according to Beardsell and Dale (1999), the list of the TQM
characteristics in the food supply and distribution industry is not dissimilar to those in
other industries.
Exploring the literature, the following factors were detected as those that constitute
TQM (Rahman and Siddiqui, 2006; Gotzamani et al., 2006; Ju et al., 2006; Karia and
Asaari, 2006; Drew and Healy, 2006; Hafeez et al., 2006; Singh and Smith, 2006;
Singh et al., 2006; Hoang et al., 2006; Yang, 2006; Ahmed et al., 2005; Lagrosen and
Lagrosen, 2005; Lewis et al., 2005; Miyagawa and Yoshida, 2005; Prajogo and
McDermott, 2005; Prajogo, 2005; Seth and Tripathi, 2005; Sila and Ebrahimpour, 2005;
Tari, 2005): leadership, strategic quality planning, employee management and
involvement, supplier management, customer focus, process management, continuous
improvement, information and analysis, knowledge and education, and quality
management tools and techniques usage. However, the literature mentions the following
results achieved through the implementation of the TQM practices ( Ju et al., 2006; Karia
and Asaari, 2006; Seth and Tripathi, 2006; Singh and Smith, 2006; Wilcock et al., 2006;
Yang, 2006; Miyagawa and Yoshida, 2005; Sila and Ebrahimpour, 2005; Tari, 2005):
customer satisfaction, employee satisfaction, the protection of natural and social
environment and finally the internal and external business results.

Studies with exclusive food companies in their sample

Han et al. (2009) studying 229 pork processors in Eastern China found that the
integrated information technology and integrated logistics management improved the
quality management practices used and that there was a direct relationship between
the quality management practices and the firm’s performance. Attention to quality
management turned out to be critical to generate sales growth, improve customer
satisfaction and provide profits for the company. Furthermore, they showed that the
in-company quality management, supplier/customer quality management, employee
involvement, quality design and the quality process management all contributed to
overall firm’s performance.
Mady (2008) assessed the manufacturing policies and practices (cost, delivery,
quality, flexibility and innovativeness) in two of the main manufacturing sectors in the
country of Kuwait, namely, food processing and refractors industries (30 and 32 plants,
respectively). Different size groups, in both sectors, indicated the same level of focus on
IJPPM quality improvement, cost reduction and innovativeness. Noticeably, the two industrial
59,7 sectors did not differ significantly in their level of focus on each of the five competitive
priorities. The two industries focused on on-time delivery and quality improvement
strategies as the two main competitive priorities. Both flexibility and innovativeness
were the least emphasized priorities in both sectors.
Alsaleh (2007) surveyed 83 food processing and manufacturing companies in
672 Saudi Arabia, the majority of which had been certified to some type of quality system.
Quality tools such as the control chart, run chart, histogram, Pareto chart, and cause and
effect chart appeared to be utilized throughout the production stages, starting from
receiving the raw materials to the marketing of the end-products, which revealed some
early signs of TQM implementation. Based on these results, he states that the
willingness to implement more advanced quality procedures and tools in the future
indicates an encouraging future for the food industry.

Studies with non-exclusive food companies in their sample

Kumar et al. (2009) studied 15 Canadian finalists in the total quality category of the
Canadian Awards for Business Excellence, most of which were from the manufacturing
sector. All of them were already at an advanced stage of TQM adoption. The study
provided evidence of the positive impact of TQM on company performance. Regarding
the four domains of company performance studied, all of them were improved, in
particular employee relations (improved employee participation and morale), operating
procedures (improved products and services quality, process and productivity, and
reduced errors/defects), customer satisfaction (reduced number of customer complaints),
and financial results (increased profitability). These tangible benefits were felt, on
average, 33.3 months after the TQM adoption, with a minimum of six months to a
maximum of 96 months.
Jayamaha et al. (2008) assessed the validity of the Baldrige Criteria for Performance
Excellence by means of data collected from a sample of 91 New Zealand organizations.
Their results showed that business results were affected by human resources focus
and process management. Process management was equally affected by customer and
market focus, human resources focus and measurement analysis and knowledge
management. With respect to human resources focus, the results showed that it
was mainly affected by measurement analysis and knowledge management and
secondarily by strategic planning. Customer and market focus was mainly affected by
measurement analysis and knowledge management and secondarily by strategic
planning. Strategic planning was equally affected by leadership and measurement
analysis and knowledge management. Finally, the results showed that measurement
analysis and knowledge management were largely influenced by leadership.
Fening et al. (2008) studied 116 small firms covering all sectors in Ghana. They
examined the relationship of each of the MBNQA variables with the five performance
indicators of profitability, customer satisfaction, sales growth, employee morale, and
market share. All the variables of quality management indicated a positive significant
relationship with performance. It seems to confirm that quality management is made
up of variables that combine to form quality management and that the implementation
of the practices must be done individually at a gradual pace.
Su et al. (2008) conducted a survey of 151 ISO 9001 certified manufacturing and
service firms in West China. The results suggested that quality management practices
(e.g. customer focus, employee training, leadership and top management commitment, TQM practices
cross-functional quality teams, employee involvement, continuous improvement and in food
innovation, quality information, performance measurement and statistical process
control) did not have a positive impact on the firms’ business performance (sales companies
growth, market share and growth in market share) directly, but had an indirect impact
on business performance mediated by quality performance (defects, product quality,
durability, reliability, delivery on time) and R&D performance (mistakes rate in design, 673
R&D time, competency and cost). Furthermore, the authors found that the industrial
type moderated the relationships between quality management practices and business
performance, while competition did not. More specifically, the contribution of quality
management practices to the firms’ financial and marketing performance was greater
in the service firms.
Salaheldin (2009) studied 139 small- and medium-sized enterprises (SMEs) in the
Qatari industrial sector. Data analysis revealed three levels of critical success factors of
TQM implementation, namely the strategic factor (leadership, organizational culture,
continuous improvement, benchmarking, quality goals and policy), the tactical factor
(team building and problem solving, employee empowerment, involvement and
training, use of information technology, supplier management) and the operational
factor (product and service design, process control, customer orientation, resources
value addition process, resources conservation and utilization, inspection and checking
work). The results showed that there was a substantial positive effect of the TQM
implementation on both the operational performance (internal operation in terms of cost
and waste reduction, improving the quality of products, flexibility, delivery and
productivity) and the organizational performance (revenue growth, net profits, profit to
revenue ratio and return on assets, investments in R&D, new products development,
market development and orientation). The findings also confirmed the significant
relationship between operational and organizational performances of the SMEs and the
central role of the strategic factor in the successful implementation of the TQM
programmes within the SMEs.
Research methodology
Questionnaire
Having in mind the above-mentioned research questions, a research project was carried
out in Greek food companies. The data collection method used was that of the
questionnaire, that was designed based on the TQM practices and the respective results
defined in the literature. The questionnaire was reviewed by quality management
academics and professionals and consisted of three parts. The first part contained
questions regarding the companies’ profiles. The second part contained statements
regarding the implementation status of the TQM practices, while the third part was
concerned with the level to which results are achieved with respect to customers,
employees, society, and the company itself (internal and external business results).
Respondents were asked to indicate the degree of agreement or disagreement with these
statements using a seven-point Likert scale, where 1 represented “strongly disagree”
and 7 represented “strongly agree”.

Sample
During the specification phase of the sample companies that would participate in the
research project, we focused on those companies that had been certified to ISO 9001:2000
IJPPM and ELOT 1416 standard (the Greek organization for standardization, ELOT, developed
59,7 and operated a scheme for the certification of the HACCP system). The reason for doing
so was that these quality standards are internationally acknowledged as the standards
that are based on quality management principles which are in line with the TQM
philosophy. So, the sample was 392 ISO 9001:2000 and ELOT 1416 certified food
companies that had been recorded in the database of ICAP, the largest business
674 information and consulting firm in Greece. A self-administered questionnaire was
distributed to the sample companies that were operating in different locations in Greece.
It was requested that the questionnaire be completed by a senior officer/executive in
charge of quality management. A useful sample of 92 respondents was used for further
study (response rate of 23.46 percent).

Method
Non-response bias was checked by comparing the responding companies with the
non-responding ones. No statistically significant differences were detected with respect
to the companies’ size, head office location, and their main activity (manufacturing,
service providing and wholesale trading). Exploratory and confirmatory factor analyses
were applied to refine the latent constructs/factors (unobserved variables) of the TQM
practices and the respective results and to assess the measurement model reliability and
validity. The relationships between the latent constructs/factors of the TQM practices
and the respective results were examined through multiple linear regression analyses.
The statistical packages SPSS 15 and AMOS 6 were used for data processing.

Results
The companies’ profiles
The vast majority of the responding food companies was small-medium sized, given
that 81.5 percent of them employed less than 250 employees, 9.8 percent more than 250,
and less than 500 employees and 8.7 percent employed more than 500 employees.
According to the main activity of the companies, they were divided into manufacturers
(80.7 percent), service providers (8 percent), and wholesale traders (11.3 percent).
In the manufacturing sector, there were companies from almost all fields. A rate of
67.4 percent of the responding companies had been certified to ISO 9001:2000 until the
end of 2003, while a rate of 60 percent had been certified to ELOT 1416 until the end of
2005. A rate of 61.5 percent of the responding companies stated that it was not the first
time that they had implemented an ISO 9000 QA standard, since they had been
certified to the standards of the ISO 9000:1994 series. Finally, a rate of 75 percent of the
companies expressed the wish to apply a quality management system in accordance
with total quality in the future.

TQM practices implemented – exploratory and confirmatory factor analysis

The observed/measured variables regarding the TQM practices were used as the basis
for the exploratory factor analysis (varimax rotation method). However, in order to
guarantee the convergent and discriminant validity, the low loading items (, 0.5) were
excluded from the subsequent data analysis, while the latent constructs/factors
with a high degree of correlation were considered as a common construct/factor
(e.g. leadership and strategic planning, process management and quality tools usage).
The result was to establish four latent constructs/factors into which the TQM practices
were analyzed (Kaiser-Meyer-Olkin ¼ 0.827, Bartlett’s test of sphericity ¼ 756.248, TQM practices
p ¼ 0.000, MSA . 0.693, eigenvalue . 1, cumulative variance ¼ 79.07 percent, and in food
Cronbach’s alpha . 0.839). These constructs/factors were explained based on the
measured variables’ loadings (. 0.60) and can be labeled as follows: “process and data companies
quality management”, “employee involvement”, “customer focus”, and “quality
practices of the top management”. This model was confirmed through the
confirmatory factor analysis (Table I, Figure 1). From Table I, we observe that all 675
but one of the standardized regression weights are above 0.7 and the respective
squared multiple correlations are satisfactorily high. This means that the factor

Standardized Squared
regression multiple
Latent constructs Measured variables weights correlations

Process and data quality Systematic recording and analysis of

management (Z1) the company’s performance data
(var01) 0.856 0.733
Systematic recording and analysis of
the quality cost data and the cost of
the quality improvement initiatives
(var02) 0.786 0.617
Systematic recording and analysis of
the quality data (rate of defects,
defective products, non-conformities)
(var03) 0.846 0.716
Determination of areas, processes and
points for improvement (var04) 0.782 0.611
Employee involvement (Z2) Employees implement changes
(var05) 0.844 0.713
Employees participate in quality
improvement activities (var06) 0.968 0.938
Employees take initiatives during their
work – problem-solving process
(var07) 0.748 0.560
Customer focus (Z3) Customers are encouraged to
submit proposals and their complaints
(var08) 0.811 0.657
The company evaluates the degree of
customer satisfaction (var09) 0.854 0.729
There is a documented process of
collecting customer complaints –
suggestions (var10) 0.798 0.637
Quality practices of top Top management actively participates
management (Z4) in the quality management system,
QMS (var11) 0.857 0.734
Top management communicates its
commitment to quality to its employees
(var12) 0.952 0.906 Table I.
Top management discusses quality “TQM practices” –
issues in the meetings of its members confirmatory factor
(var13) 0.609 0.371 analysis
IJPPM var01
1 er01
59,7 1
Process and data 1 er02
var02
quality management
(Z1) 1 er03
var03

676 var04
1 er04

1
var05 er05
Employee
1 1
involvement var06 er06
(Z2)
1
var07 er07

1
var08 er08
Customer
1 1
focus var09 er09
(Z3)
1
var10 er10

1
var11 er11
Quality practices
of top 1 1
Figure 1. var12 er12
management
The measurement model (Z4)
“TQM practices” 1
var13 er13

loadings are satisfactorily high and that a high amount of measured variable’s
variance is explained by a latent construct/factor. The goodness of the model fit to the
observed data is presented in Table II. From this table, we observe that the basics of
goodness-of-fit, the absolute fit indices and the incremental fit indices indicate an
acceptable fit of the proposed model.
The reliability of the latent constructs/factors was confirmed, according to Hair et al.
(2005), through Cronbach’s alpha coefficients that were higher than 0.839 (Table III).
Construct validity was confirmed, according to Hair et al. (2005), through
the confirmatory factor analysis by evaluating the convergent validity (factor
loadings . 0.609, AVE . 0.670, construct reliability . 0.855), discriminant validity
(AVE . Corr2), (Table III), face-content validity (questionnaire review by experts in the
field) and nomological validity (significant correlations among the latent
constructs/factors in the measurement model).
Results achieved from implementing the TQM practices – exploratory and confirmatory
factor analysis
The observed/measured variables regarding the results achieved from implementing
the TQM practices were used as the basis for the exploratory factor analysis (varimax
rotation method). However, in order to guarantee the convergent and discriminant
validity, the low loading items (, 0.5) were excluded from the subsequent data analysis.
The result was to establish three latent constructs/factors into which the “results” were
 TQM practices
Goodness-of-fit measures CFA model
in food
The basics of goodness-of-fit companies
Chi-squared 53.335
Degrees of freedom 52
Probability level 0.423
Absolute fit indices 677
Chi-squared/degrees of freedom (x 2/df) 1.026
Root mean square of approximation, RMSEA 0.017
Goodness-of-fit index, GFI 0.918
Incremental fit indices
Normed fit index, NFI 0.931
Incremental fit index, IFI 0.998
Tucker-Lewis coefficient, TLI 0.997 Table II.
Comparative fit index, CFI 0.998 Goodness-of-fit measures
of the measurement
Note: CFA, confirmatory factor analyses model “TQM practices”

Cronbach’s Average variance Construct

Latent constructs alpha extracted reliability (Corr)2

Process and data quality management (Z1) 0.895 0.670 0.890 0.421
Employee involvement (Z2) 0.889 0.736 0.892 0.147
Customer focus (Z3) 0.866 0.675 0.861 0.421
Quality practices of top management (Z4) 0.839 0.670 0.855 0.345
Notes: Average variance extracted, AVE ¼ Sl2i /n where n is the number of items, i ¼ 1, . . ., n and li
the standardized factor loading; construct reliability, CR ¼ (Sli)2/[(Sli)2 þ (Sdi)] where n is the Table III.
number of items, i ¼ 1, . . ., n, li the standardized factor loading and di the error term); (Corr)2, the “TQM practices” – model
highest squared correlation between the construct of interest and the remaining constructs reliability and validity

analyzed (Kaiser-Meyer-Olkin ¼ 0.861, Bartlett’s test of sphericity ¼ 915.274,

p ¼ 0.000, MSA . 0.776, eigenvalue . 1, cumulative variance ¼ 83.4 percent and
Cronbach’s alpha . 0.879). These constructs/factors were explained based on the
measured variables’ loadings (. 0.60) and can be labeled as follows: “market benefits”,
“customer satisfaction” and “quality improvement”. This model was confirmed through
the confirmatory factor analysis (Table IV, Figure 2). From Table IV, we observe that
almost all the standardized regression weights are above 0.7 and the respective squared
multiple correlations are satisfactorily high. This means that the factor loadings are
satisfactorily high and that a high amount of measured variable’s variance is explained
by a latent construct/factor. The goodness of the model fit to the observed data is
presented in Table V. From this table, we observe that the basics of goodness-of-fit,
the absolute fit indices and the incremental fit indices indicate an acceptable fit of the
proposed model.
The reliability of the latent constructs/factors was confirmed, according to Hair et al.
(2005), through Cronbach’s alpha coefficients that were higher than 0.879 (Table VI).
Construct validity was confirmed, according to Hair et al. (2005), through
the confirmatory factor analysis by evaluating the convergent validity (factor
loadings . 0.697, AVE . 0.733, construct reliability . 0.903), discriminant validity
IJPPM
Standardized Squared multiple
59,7 Latent constructs Measured variables regression weights correlations

Market benefits (F1) Competitive position has been

improved (var14) 0.845 0.714
Performance has been improved
678 (var15) 0.697 0.486
Market share has been improved
(var16) 0.930 0.865
Sales have been increased (var17) 0.982 0.964
Profit has been increased (var18) 0.798 0.637
Customer satisfaction (F2) Customer complaints have been
decreased (var19) 0.884 0.781
Customer satisfaction has been
improved (var20) 0.890 0.792
The number of the customers has
been increased (var21) 0.836 0.699
Quality improvement (F3) Defects in semi-final products
Table IV. have been reduced (var22) 0.947 0.897
“Results achieved from Defects in final products have
implementing the TQM been reduced (var23) 0.934 0.872
practices” – confirmatory Non-reproduced products have
factor analysis been reduced (var24) 0.791 0.626

1 er14
var14

1 er15
var15
Market 1
benefits var16 er16
1
(F1)
1 er17
var17

1 er18
var18

1
var19 er19
Customer
satisfaction 1 1
var20 er20
(F2)
1
var21 er21

1
Figure 2. var22 er22
1
The measurement model Quality 1
“results achieved from improvement var23 er23
implementing the TQM (F3)
practices” 1
var24 er24
 TQM practices
Goodness-of-fit measures CFA model
in food
The basics of goodness-of-fit companies
Chi-squared 54.373
Degrees of freedom 35
Probability level 0.019
Absolute fit indices 679
Chi-squared/ degrees of freedom (x 2/df) 1.554
Root mean square of approximation, RMSEA 0.08
Goodness-of-fit index, GFI 0.903
Incremental fit indices
Normed fit index, NFI 0.942 Table V.
Incremental fit index, IFI 0.978 Goodness-of-fit measures
Tucker-Lewis coefficient, TLI 0.965 of the measurement
Comparative fit index, CFI 0.978 model “results achieved
from implementing the
Note: CFA, confirmatory factor analyses TQM practices”

Cronbach’s Average variance Construct

Latent constructs alpha extracted reliability (Corr)2

Market benefits (F1) 0.928 0.733 0.931 0.232 Table VI.

Customer satisfaction (F2) 0.879 0.757 0.903 0.598 “Results achieved from
Quality improvement (F3) 0.918 0.798 0.922 0.598 implementing the TQM
practices” – model
Note: As in “Notes” of Table III reliability and validity

(AVE . Corr2), (Table VI), face-content validity (questionnaire review by experts in the
field), and nomological validity (significant correlations among the latent
constructs/factors in the measurement model).

The impact of the latent constructs on achieving quality management results

Multiple linear regression analyses were conducted in order to identify those latent
constructs/factors that significantly influence the quality management results.
Three multiple linear regression analyses were conducted, each having as a single
dependent variable each of the following latent constructs/factors: “quality
improvement” (F3), “customer satisfaction” (F2), “market benefits” (F1). In the first
regression model, we examined the impact on the dependent variable “quality
improvement” (F3) of the following latent constructs/factors (independent variables):
“process and data quality management” (Z1), “employee involvement” (Z2), “customer
focus” (Z3) and “quality practices of the top management” (Z4). In the second regression
model, we examined the impact on the dependent variable “customer satisfaction” (F2)
of the following latent constructs/factors (independent variables): “process and data
quality management” (Z1), “employee involvement” (Z2), “customer focus” (Z3), “quality
practices of the top management” (Z4) and “quality improvement” (F3). In the third
regression model, we examined the impact on the dependent variable “market benefits”
(F1) of the following latent constructs/factors (independent variables): “customer
satisfaction” (F2) and “quality improvement” (F3).
IJPPM Summated scales were calculated for the independent and the dependent variables
59,7 of the regression models, based on the sum of their respective items. Using the
standardized and the studentized residuals, we examined the assumptions required for
each regression analysis and more specifically the linearity, homoscedasticity,
independence and normality. So, according to Hair et al. (2005), we made specific tests
for each assumption to check for violations. The results showed that, in each regression
680 model, these assumptions were not violated. Finally, the multi-collinearity among the
“independent” variables of each regression model was checked and not confirmed
(tolerance . 0.1, variance inflation factor , 10, condition index , 30).
Assessing the overall model fit, the results showed that the first regression is
statistically significant ( p ¼ 0.000 and adjusted R 2 ¼ 0.297). Estimating the regression
model, the results showed that the dependent variable “quality improvement” (F3) is
equally affected by the following independent variables: “process and data quality
management” (Z1) ( p , 0.05, beta standardized coefficient ¼ 0.245) and “quality
practices of the top management” (Z4) ( p , 0.05, beta standardized coefficient ¼ 0.252)
(Figure 3).
The results showed that the second regression is also statistically significant
( p ¼ 0.000 and adjusted R 2 ¼ 0.523). Estimating the regression model, the results
showed that the dependent variable “customer satisfaction” (F2) is mostly affected by
the independent variable “quality improvement” (F3) ( p ¼ 0.00, beta standardized
coefficient ¼ 0.482) and secondarily only by the independent variable “customer
focus” (Z3) ( p ¼ 0.01, beta standardized coefficient ¼ 0.282) (Figure 3).
Finally, the results showed that the third regression is also statistically significant
(p ¼ 0.000 and adjusted R 2 ¼ 0.346). Estimating the regression model, the results

Employee
involvement
Z2

Process and ns
data quality s
management 0.245
Z1 * Quality
improvement
52* F3
0.2 R sq. adj = 0.297 0.
24
s

2*
ns

Quality
Market
practices
0.482***

benefits
of top
F1
nss

management
R sq. adj = 0.346
Z4
*
ns

6*
s

41
0.

nss
Customer
Customer 0.282* satisfaction
focus F2
Figure 3. Z3 R sq. adj=0.523
Factors influencing TQM
results achievement
Notes: Statistically significant in *p = 0.05; **p = 0.01; ***p = 0.001; nss, non-statistically significant
showed that the dependent variable “market benefits” (F1) is mostly affected by the TQM practices
independent variable “customer satisfaction” (F2) ( p ¼ 0.001, beta standardized in food
coefficient ¼ 0.416) and secondarily by the independent variable “quality
improvement” (F3) ( p , 0.05, beta standardized coefficient ¼ 0.242) (Figure 3). companies

Discussion
Almost 25 percent of the certified food companies recorded in the database of ICAP 681
(the only official data base in Greece that gives information regarding the certified
companies) participated in this study. This rate is not at all low, not only with respect
to the respondent sample in a questionnaire survey but also to a representative sample
of the ISO 9001:2000 and ELOT 1416 certified food companies. It is not the first time
that we have realized that the Greek food companies are small and medium sized.
A research project regarding the ISO 9001:2000 implementation (that was carried out
by the authors of this paper using a different sample of Greek food companies, results
of which will be published soon) revealed once again the small-medium character of
this sector in Greece. Moreover, both studies showed that in the Greek food sector, the
majority of the companies are manufacturing and processing ones.

The food companies in the context of quality systems

Not only are the companies in the study presented in this paper certified to ISO 9001:2000
and ELOT 1416 standards, but the majority of them seem to have experience in
implementing these standards. This conclusion is reached given that the majority of
them have been implementing both standards for more than four years, while most of
them had been certified to the previous series of the ISO 9000:1994 standards. It should
also be mentioned that there is not an obligation by law to implement a QA standard and
to be ISO 9001 certified. Regarding the HACCP system, this is not true given the fact that
in Greece, the food companies have been obliged by legislation to implement food safety
and hygiene management procedures since the January 1, 2006. However, the results
of the present study show that the Greek food companies rushed to certify the HACCP
system implementation before the deadline required by law. Having in mind the
above-mentioned points regarding the status and time companies have been ISO 9001
and ELOT 1416 certified as well as the wish expressed by the majority of the companies
to adopt the principles of total quality, it is concluded that the food companies adopt the
quality management philosophy. It seems that they are doing so because they are
motivated by the following reasons: the many food scandals frequently happening all
over the world, the escalating demands of consumers with respect to safe and quality
foods and the competition in the global market that is characterized by the recent
downturn and the economic crisis.
In line with this conclusion is the result from the study of Alsaleh (2007) according to
which there was a sign of a higher level of QA in the Saudi Arabia food industry than
was expected. An encouraging future is expected for this specific food industry given the
reflected enthusiasm of the sector to attain internationally recognized quality awards,
a fact that may help these companies to endure the new challenges and survive the free
trade market. The survey of Drew and Healy (2006) illustrated, as the present study does,
the continuing importance of, and reliance upon, quality standards. This survey showed
that the interest and adoption of quality improvement initiatives in Irish organizations
is growing rapidly, particularly since the mid-1990s. Organizations were increasingly
IJPPM seeking, and succeeding in being awarded, standards – most notably ISO 9000.
59,7 A smaller number of organizations were applying for national awards and an even
smaller number had received awards from the EQA/Baldridge. However, nearly
two-thirds of the responding organizations stated that they had adopted a total quality
approach. This implies that although total quality is a relatively recent approach,
the future towards total quality cannot but be of great promise. However, this conclusion
682 is in line with the findings from the study presented in this paper.

The managerial message arises from the latent constructs of the TQM practices and
results and their relationships in food companies
Factor analyzing the TQM practices implemented in food companies, it was revealed
that four latent constructs/factors better depict the TQM philosophy in this sector. These
constructs deal with the top management, employees, customers, and the processes and
data of the company. Moreover, factor analyzing the results achieved through the
implementation of the TQM practices, the following three latent constructs/factors were
revealed: quality improvement, customer satisfaction and market benefits. Based on
these latent constructs and the literature, a framework was created portraying the
interrelationships between them. In doing so, we wanted to find ways that would help a
company to optimize the results achieved through the TQM implementation.
Meaningful relationships were revealed by examining which latent constructs/factors
have significant impact on the quality management results (Figure 3). The findings
showed that the improvement of a company’s quality is equally influenced by the level of
adoption of quality practices by the top management and the quality management of
either the available data or the processes. On the contrary, practices such as employee
involvement in the quality management and the level of focus on customers did not seem
to affect the quality improvement in the internal environment of a company. Achieving
internal quality improvement, a consequential result, one may expect, is the satisfaction
of a company’s customers. In fact, the analysis showed that mostly by improving a
company’s quality and secondarily by focusing on customers’ needs and suggestions,
the main result is the achievement of satisfied customers. Finally, according to the
results, the customer satisfaction is the main driver that creates, along with the
company’s quality improvement, significant market benefits.
The managerial message that arises from the framework in Figure 3 and the
significant relationships is of great importance for those companies which really adopt
(or want to) the TQM principles. The Greek food companies, according to the results
of the present study, are conscientious in implementing quality standards. Their journey
to quality seems not to stop at the ISO 9001:2000 and ELOT 1416 certifications.
The authors believe, based on the perceptions of the companies’ representatives
participating in the present study, that these companies will be guided through the new
and revised standards such as the ISO 22000:2005 and the ISO 9001:2008 standards, to
the TQM implementation. For this achievement, factors such as those identified in the
present study might be helpful. In other words, factors such as the “process and data
quality management”, “employee involvement”, “customer focus”, and “quality
practices of the top management” are the main areas that these companies should
focus on. In any case, it is concluded from this study that focusing on these
constructs/factors a company’s improvement is achieved with regard to the internal
procedures and product quality. This quality improvement leads to customer
satisfaction and consequently to market benefits. Having succeeded in surviving the TQM practices
competition, increasing the market share and multiplying the profits, might help a food in food
company to withstand the current downturn and the economic crisis.
companies
Comparing the results of the present study with those of similar studies
The mediating effect of a company’s quality improvement on the relationships between
TQM practices and market benefits, that proved to be significant in the present study, is 683
in accordance with the results of the study of Su et al. (2008). They found that improving
a firm’s quality performance along with R&D performance, through the implementation
of quality management practices, the final result is business performance improvement.
The findings from the study of Han et al. (2009) are also in line with the findings from the
study presented in this paper. More specifically, they found that a high level of firm
performance with respect to customer satisfaction and sales and profit growth, greatly
depends on quality management practices implementation. Kumar et al. (2009) also
proved in qualitative terms that TQM has a positive impact on customer satisfaction,
employee relations, operating procedures and financial results.
Iseri-Say et al. (2008) found that the adoption of management techniques influenced
organizational performance (financial results, organizational integrity, performance
capabilities, customer equity, competitive positioning), especially when supported
by clear vision and mission statements. The study of Iseri-Say et al. (2008) that was
conducted in multiple industries, considered “management techniques” as a broad
concept incorporating tools, techniques, concepts and practices anchored in widely
accepted management ideas, while our study in the food sector focuses on specific
management practices that are characterized by the TQM philosophy. The results
revealed through both studies are quite similar. In other words, having clear vision
and mission statements has been found to be crucial in achieving organizational
performance improvement. The results from the study of Fening et al. (2008) are in line
with the results from the study presented in this paper. They suggest SMEs to redirect
their focus on implementing quality management practices, which will enable them to
produce or manufacture quality products. This will help them meet customer demand
thereby increasing their market base, which eventually goes to increase profit, customer
satisfaction, market share and growth. The study of Yang (2006) reached the same
conclusion with the present study, despite the fact that the sample companies that were
used in both studies were from different sectors. It was found that by implementing
TQM, customer satisfaction is achieved and consequently competitiveness is increased.
Our findings are also consistent with the findings of the study of Salaheldin (2009), who
concluded that there is causality between strategic factors of TQM practices and
operational and organizational performances, i.e. financial and non-financial
performances of SMEs. In other words, it was proved, in the industrial sector in
general, that TQM implementation brings quality improvement of the internal
operations of companies which helps them increase their financial indices.
Siddiqui and Rahman (2007) identified two independent variables that provide the
key impressions for TQM benefits – customer-centric advancements and support of
top management. These factors are also identified in the present study in the food
sector as those having an indirect effect on market benefits, through customer
satisfaction and quality improvement, respectively. The results from the study of
Jayamaha et al. (2008) endorse some salient features of quality management: reliance
IJPPM on measurement, analysis and knowledge management; the involvement of people; and
59,7 the role of leadership in setting directions. These features, contrary to the results from
our study, proved to be crucial in achieving business results.

Conclusions
684 The small- and medium-sized Greek food companies have not only been implementing a
food safety management system but a QA standard as well. They have been doing so not
for a short period of time, which means that they have experience in implementing
quality practices. We have tried through this study to define the underlying structure –
the latent constructs/factors (unobserved variables) – of the TQM practices
implemented and the results achieved from implementing such practices in food
companies. Identifying these latent constructs/factors, we determined ways to optimize
the business results achieved. This might be helpful for those companies who are trying
to move towards a higher level of quality management (e.g. TQM) and are straining to
survive in a globally competitive environment where a downturn is dominating.
Four reliable and valid latent constructs/factors were revealed regarding the TQM
practices implemented in the food sector. In other words, four main pillars were revealed
illustrating the TQM philosophy. The “process and data quality management”,
“employee involvement”, “customer focus” and the “quality practices of the top
management” are the factors that depict TQM in food companies. Moreover, three
reliable and valid latent constructs/factors were revealed regarding the results achieved
through implementing the TQM practices. A “company’s quality improvement”,
“customer satisfaction”, and “market benefits” are the results that demonstrate what is
achieved when TQM practices are implemented. However, in optimizing these results
not all the latent constructs/factors have a significant impact. The framework
portraying the significant relationships between the latent constructs shows that the
quality improvement of a company is achieved through the adoption of quality
management practices by top management and process and data quality management.
Having improved the internal procedures and consequently the quality of products, the
customers appreciate the importance the company attaches to them, so they cannot but
feel satisfied. Finally, the findings showed that the customer satisfaction is the main
factor that contributes, along with the company’s quality improvement, to optimizing
the market benefits. So, the main conclusion from this study is that by implementing
TQM practices, a food company can strengthen its internal quality performance, which
leads to increased market benefits through customer satisfaction.
However, in our study, there are some limitations that give rise to a number of
suggestions for future research. Given the quite small sample size and the few latent
constructs/factors that compose the measurement models presented in this study, it is
recommended to further analyze in a broader sample size the possibility of rebuilding
the proposed models, incorporating the observed variables that were removed from the
data analysis owing to either low factor loading or convergent or discriminant validity.
Furthermore, the data used in this study do not constitute objective but subjective
business evidence obtained from the companies’ representatives. This fact, especially
with regard to the business results entails the risk of receiving biased responses. So,
future research is recommended using objective data that will be drawn from the
documents of the quality management systems implemented by the food companies.
Such data could, for example, be the percentage of non-conformities, quantitative TQM practices
quality indices and financial indices. in food
companies
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About the authors

Evangelos L. Psomas is a Research Assistant in the Department of Business Administration of
Food and Agricultural Enterprises of the University of Ioannina. Evangelos L. Psomas is the
corresponding author and can be contacted at: epsomas@cc.uoi.gr
Christos V. Fotopoulos is a Full-Time Professor of Marketing Management and Head of the
Department of Business Administration of Food and Agricultural Enterprises of the University
of Ioannina.

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